Buyers Guide

Page 8

Transferring Money: The cost and time it takes to transfer money varies considerably, as do the bi currency services, so shop around in your home country and also in Spain.
Buying euros in your home country is not your only option.
Most people do not realise the commissions and fees charged by Banks are negotiable, do not be afraid to haggle!
There are some very good companies who offer much better exchange rates than the high street banks, and some even allow you to pre book currency at a set exchange rate for the future, this is particularly important for off plan purchasers wishing to protect themselves from the falling pound / dollar.

Becoming a Resident: If you wish to spend more than 183 days per year in Spain you will need to apply for a Residencia to become registered as a Resident.
Being a resident does not restrict your movements in any way you will be able to spend as much or as little time in Spain as you wish, there are no restrictions, but there are many advantages.
Registering as a resident in Spain, in no way changes your nationality
If you are not to become a Resident you must appoint a fiscal representative who is, your Asesor would be a good choice, This is not a responsibility that should be entrusted to an amateur friend or neighbour.

Good reasons for becoming a resident:
The are many advantages, some of the major ones are:

1. If you are resident and more than 65 years old, and you have lived in your home for at least 3 years, you will not be liable to Spanish capital gains tax when you sell it, no matter how much profit you make [Non residents will be taxed at up to 35%]
If you are a resident, the maximum capital gains tax will be 20% or less [non residents pay 35%]

2. If you are a resident and you sell your primary residence in Spain and invest your profit into a more expensive property which will also be your primary residence in Spain, you will not have to pay any capital gains tax at all.

3. If you are resident and you sell your property, you will not be subject to having 5% of the total declared selling price withheld as a guarantee against possible tax liabilities [non residents will have 5% withheld, and if no liabilities are found, your abogado will be able to retrieve it in around 12 months]

4. If you are a resident and will your home to your spouse or child who is also a resident, then Spanish inheritance tax can be avoided on 95% of the valuation, providing that you have owned and lived in the property for at least 3 years, and the inheritor undertakes not to sell the property for 10 years and continue to be a resident. The cut off point for the 95% reduction is 120,200 euro, over that amount you must pay.

5. Residents do not have to pay non residents property owners tax and have an exception to the first 108,200 euro of valuation for the Spanish capital assets tax or wealth tax. If a couple jointly own a property and are both resident it is doubled to 216,400 euro exception

6. If you register as a resident more funds will be allocated from central government to the area in which you live to improve the infrastructure of your area, which will improve the value of your property, you will also be able to vote in local elections.

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